Cinven has acquired Germany-based rigid film supplier Klockner Pentaplast GmbH in a leveraged buyout worth E925 million from parent Klockner Werke AG, effective October 1. However, the deal is subject to approval from European competition authorities and from the Klockner Werke supervisory board.
This board’s general meeting is set for December 14.
The sale price will be collected tax-free by Klockner Werke AG and there will only be a partial reduction in the tax loss carried forward.
Peter Gangsted, Cinven’s managing director in Frankfurt, was the equity leader for Cinven. The Frankfurt offices of CSFB and Deutsche Bank jointly advised on the acquisition and both banks underwrote the debt element. While this debt element may be syndicated by the banks, there is no specific time scale at present. It is thought the debt accounted for around 70 per cent of the deal.
Dr Stephan Krummer of Rothschild advised Klockner Werke.
Cinven will focus on growing the company’s market position and performance. “The company can be further enhanced through the strategic opportunities and capital investment that Cinven can bring,” said Gangsted. Klockner Pentaplast will also be examining future acquisitions.
The company will be run by the existing management team, notably comprising Dr Heinz Gaertner, Norbert Gunderlach and Thomas Goeke. And as part of a performance-related package, the management is expected to secure an equity stake in the company.
Klockner Pentaplast produces rigid films for packaging, including food and pharmaceuticals, as well as other products such as stationery. It operates from 14 locations in six countries and employs a staff of around 3,100. For the year ending September 2001, the company expects to post a turnover of E870 million, according to Cinven.
Klockner Werke AG, headquartered in Duisburg, Germany, is 82 per cent owned by German property company WCM Beteiligungs-und Grundbesitz AG. The remainder is publicly traded on the DAX, the Frankfurt stock exchange. WCM said it will be voting in favour of accepting the proposed sale of the Pentaplast activities at the meeting in December.